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Supreme Court issues notice to Meghalaya, Sikkim, Ladakh on non-establishment of appellate tribunals under RERA

The Supreme Court has issued notice to the governments of Meghalaya and Sikkim, along with the Union Territory administration of Ladakh over their failure to establish regulatory authorities as well as appellate tribunals under the Real Estate (Regulation and Development) Act, 2016.

The Apex Court last week also issued notice to the states of Arunachal Pradesh, Mizoram and West Bengal, along with the Union Territory of Jammu and Kashmir for not establishing real estate appellate tribunals. These states have notified the rules and established regulatory authorities under the RERA.

The Bench of Justice Sanjiv Khanna and Justice S.V.N. Bhatti further issued notice to the Nagaland government, which is the only state yet to notify the rules under the Act. 

The directions were issued on a miscellaneous application in a disposed of writ petition regarding the availability of RERA as a parallel remedy for homebuyers. 

In 2019, while upholding the 2018 amendments made to the Insolvency and Bankruptcy Code in 2018 to treat homebuyers as financial creditors, the Apex Court had directed all states and Union Territories to appoint permanent adjudicating officers, besides establishing permanent regulatory authorities and appellate tribunals under the RERA.

The order seeking responses from non-complying states and Union Territories was passed on August 11 after taking on record a progress report of implementation across the country submitted by Additional Solicitor General for India Balbir Singh. 

The Bench directed the concerned Chief Secretaries to file affidavits indicating the progress of a state or UT with regard to the enforcement and implementation of RERA within a period of 60 days from the date of service of this order and listed the matter for further hearing in January 2024.

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